Currencies: Technical Strategies

0

0

Yen Completes Fibonacci Pattern

Wed, May 7 2008, 21:03 GMT
by Andrei Pehar

fxKnight.com


The Japanese Yen recently completed a Fibonacci pattern starting with a low of 95.74 on March 13th, a high of 102.84 on April 1st, a 38.2% retracement to 100.13 on April 9th, and now a 138.2% extension to 105.55

We have since cooled a bit, coming to a rest at the weekly pivot at 104.77 (a level that also corresponds with the 127% Fib).  Which side of it we continue to trade on in the days ahead may be an indication of future direction.

Support is below at 104.12, 103.86 and 102.84; meanwhile resistance is waiting above at 105.55 and 106.34  There is a bearish divergence on the daily chart, and both weekly and daily stochastics are beginning to enter a bearish phase as well.

Overall there is a range being established between 105.55 and 104.12, a break-out of which may well be the key to what lies ahead.

fxKnight.com

Archive

BK Trading  | Goetheplatz 1, Postfach 15 18 23; D-80050 Munich
http://www.fx-knight.com | info@fxknight.com

Legal disclaimer and risk disclosure

Black Knight Currency Trading shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information provided on this website. The contents of any report provided should not be construed as express or implied investment advice, as a guarantee or implication that clients will profit from the strategies herein, or as a guarantee that losses in connection therewith can, or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments, such as foreign exchange trading and investment in derivatives, can be very speculative and may result in profits, as well as losses, especially if the conditions mentioned in the analysis do not occur as anticipated. Black Knight Currency Trading will not be held legally or morally responsible for trading decisions made by investors on their own trading account. We will not be responsible to compensate for any lawsuit on loss, expenses, costs, and/or damages resulting from trading in the international markets. All trading deals that an investor makes on his/her own trading account are the responsibility of the investor him/herself. The investor guarantees his/her ability to handle any financial losses resulting from trading in the international markets.

Interested in forex trading? forex brokerage firms!


FOREX.com
Contact the broker/FDM
Open a demo account
MG Financial Group
Contact the broker/FDM
Open a demo account
ODL Securities Inc
Contact the broker/FDM
Open a demo account
Deutsche Bank
Contact the broker/FDM
Open a demo account
ACM USA LLC
Contact the broker/FDM
Open a demo account

FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)

[Read Premium full description]

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

©2008 "FXstreet.com. The Forex Market" All Rights Reserved.